Shipley Corporation has provided the following data from its most recent balance sheet: $\begin{array}{lr}
\text {Total assets. }&\$760,000\
\text {Total liabilities }&\$590,000\
\text {Total stockholders' equity }&\$170,000\
\end{array}$
The debt-to-equity ratio is closest to:
A)0.29
B)3.47
C)0.22
D)0.78

Question

Shipley Corporation has provided the following data from its most recent balance sheet: $\begin{array}{lr}
\text {Total assets. }&\$760,000\
\text {Total liabilities }&\$590,000\
\text {Total stockholders' equity }&\$170,000\
\end{array}$
 The debt-to-equity ratio is closest to:
A)0.29
B)3.47
C)0.22
D)0.78

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated as Total Liabilities divided by Total Stockholders' Equity. Here, it is \$590,000 / \$170,000 = 3.47.

Shipley Corporation Has Provided the Following Data from Its Most